Dragonfly partners propose a new token economics proposal: No longer allow unlocked tokens to be pledged and cancel the token unlock cliff period

News on February 11, Dragonfly managing partner Haseeb Qureshi proposed new token economics suggestions in a post on X:

· No longer allow locked tokens to be pledged. I don't know which project first came up with this idea, but it's a foolish practice that undermines trust in the private market. We have never recommended this approach, but some venture capital firms require it and it became a popular structure years ago. We should completely end this practice for pre-launch projects.

· The second suggestion: I propose we cancel the unlocking cliff period. The standard four-year token economic structure is usually like this: there is a large 25% cliff period that unlocks after one year, everyone is very worried about it and it has also become a huge FUD event. The market hates step-by-step unlocking methods and should change to this: no cliff period, unlocking starts from the first year and then continues linearly.

You can divide it into two parts so that by the 24th month, the speed at which venture capital institutions unlock matches previous structures without much reaction from the market. In this way, tokens are unlocked daily instead of monthly so there are almost no issues or special unlock days. This makes markets more orderly and reduces dramatic events. You can keep an unlocking period of four years but markets will become smoother.